Tax accounting is not one of the most pleasant activities – and it’s not just about financial matters, but above all about formalities. People who want to save themselves trouble often opt for tax advisor support. Using a specialist offers many advantages, but you should also keep in mind that this kind of service is not free. How much does a private tax advisor? What do tax advisors cost for the self-employed? Answers to these and other questions can be found in the further part of today’s post – we invite you to read on.
How much does a tax advisor cost? It depends
How much does a tax advisor cost? This question only comes to mind when we decide to use the help of a specialist. It is known – the price for this type of service must be appropriate for both parties. It should be noted that the costs for advice from a tax advisor are not exactly defined in advance (in the form of a flat rate). This solution makes it difficult for us to calculate how high the total price for the specialist’s help will realistically be.
However, one should know, that in 2012, the regulation on the remuneration of tax advisors – StBVV – came into effect. The files contain information about what fees such a person may charge within the scope of the offered support. So what are the costs of a tax advisor? Depending on what is included in the service package, as well as the value of the subject, there is a minimum and maximum price for the service. Important: The costs of a tax advisor business may not be lower or higher than these values.
The legal regulation of the StBVV was created to prevent price competition among advisors and help taxpayers estimate the anticipated costs of tax advisors.
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Average costs of a tax advisor for tax returns
The costs for tax advisors are always individually determined – everything depends on the scope of services and the complexity of the subject. It should be remembered that the costs for the tax declaration of the tax advisor are different for simple declarations and even more different for somewhat more complex declarations.
At this point, however, we should refer to the regulation we wrote about in the previous paragraph. StVBB defines a certain framework for the legitimacy level of fees for tax advisors.
How does the above-mentioned regulation relate to the specific prices for the services of tax advisors? According to the applicable laws, the concept of an average feeapplies. This serves tax advisors as a starting point to set an appropriate final price for their services.
The average fee results from an operation where both the minimum and maximum price for the service are added together. The value must then be divided by 2.
Costs of tax advisor consultation – the tenth
Within the aforementioned regulation, appropriate ranges for the individual service fee have been established, commonly referred to as the tenth.
According to the StBVV, this term can be understood as one-tenth of the maximum fee. The following table shows how high the typical costs of the tax advisor profession are.
| Service | Tax advisor costs on the tenth scale |
| Income tax return (without determining individual income) | From 1/10 to 6/10 |
| Trade tax return | From 1/10 to 6/10 |
| Value added tax return for a specific calendar year (including additional applications and reports) | From 1/10 to 8/10 |
| Tax refund for gift tax | From 2/10 to 10/10 |
| Inheritance tax declaration (without justification of a compensation claim according to § 5 of the Inheritance Tax Act) | From 2/10 to 10/10 |
Costs of a private tax advisor – table with typical cases
However, how does this lead to the costs of a tax advisor in practice? The fee regulation stipulates the above-mentioned maximum fee, expressed as 10/10. How high it will be depends on the value of the subject (annual turnover or income of the taxpayer).
In the following table, we have compiled a comparison of the generally recognized consulting costs of a tax advisor with the value of the subject.
| Value of the subject | Full fee (10/10) |
| 5000 € | 316 € |
| 10,000 € | 510 € |
| 16,000 € | 594 € |
| 25,000 € | 720 € |
| 35,000 € | 872 € |
| 50,000 € | 1098 € |
| 65,000 € | 1179 € |
| 80,000 € | 1000 € |
| 95,000 € | 1000 € |
| 140,000 € | 1000 € |
| 200,000 € | 1907 € |
| 600,000 € | 2867 € |
It is important that this table be treated as a cost range – the costs of a tax advisor’s tax return can be higher (advisors may charge clients additional fees). These are associated, among other things, with costs for communication (post, phone, fax), travel expenses (transport costs), or costs for copies and transcripts. This is fully in line with the current regulation.
What do tax advisors cost for the self-employed?
A frequently asked question is: “What do tax advisors cost for the self-employed?”. For these individuals, the annual net turnover is the subject value used to calculate the specific consulting costs. And here is an important piece of information: The more effort the advisor has to put into the declarations, the higher the service fee.
Tax advisor costs as a flat tax rate – is it allowed?
May the costs of the advisor’s tax declaration be billed as a flat rate? Yes. The regulation provides for such a possibility (§ 14 StBVV). To settle in this way, you must submit an appropriate letter for the current service (accounting, tax advice) for a period of at least one year.
If you are interested in collaborating with a trusted tax advisor, take advantage of our PREMIUM offer. With us, you will know in advance how much you will pay, and you will also receive a guarantee of the highest quality for the services.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
